COMPARATIVE ADVANTAGE IN THE GENERALIZED SCHEME OF MANOILESCU

by Dogaru, Vasile
Published in Romanian Journal of Economic Forecasting, 2005, volume 6 issue 3,
91-113

Abstract

The comparative advantage has been studied from various perspectives, focusing solely on partial efforts such as labor force. Some researchers, such as Manoilescu, have attempted to establish a more rigorous theoretical model by observing total efforts. Moreover, the above-mentioned researcher looked at the comparative advantage from the perspective of national interest, which we shall nevertheless not deal with in our present study. By trying to identify, in a simple barter exchange, an algorithm of the relations between each entity’s individual advantages and the total advantage, we can achieve a coherent analytical understanding of the exchange act in a real-empirical negotiation.

Keywords: comparative advantage, Manoilescu, Mises, the cooperation law, individual interest, equity principle, analytical economicity
JEL Classification: A11, C78, D61, D63, F13, Q01